Video Ads Continue Surge on Instagram in Q1 (Report)

Video ads were dominant on Instagram during the first quarter of 2016, according to a study of more than 2 billion Instagram ad impressions by Brand Networks.

Video ads were dominant on Instagram during the first quarter of 2016, according to a study of more than 2 billion Instagram ad impressions by Brand Networks.

Brand Networks, an early member of the Instagram Partner Program, said 58 percent of the Instagram impressions it served during the first quarter were video ads, adding that the percentage grew throughout the quarter, from 43 percent in January to 59 percent in February and 65 percent in March.

In contrast, just 22 percent of Instagram ads served by Brand Networks in the fourth quarter of 2015 were video ads.

Brand Networks also found that:

  • Video ads account for 71 percent of the fashion industry’s ad spend, driving 90 percent of its impressions during the first three months of 2016.
  • Average cost per thousand impressions (CPM) slipped to $4.58 in January and an all-time average low of $3.88 in February before rebounding slightly to $4.19 in March. Average CPMs in the second half of 2015 were $7.04.
  • The consumer-packaged-goods industry saw impressions rise 97 percent in March compared with February, and it still saw average CPMs rise $0.08.

Brand Networks founder and CEO Jamie Tedford said in a release announcing the company’s findings:

We witnessed rapid adoption of Instagram in the last half of 2015, and it’s continued to grow at lightning speed in 2016. As brands invest more heavily in Instagram, we’re starting to uncover valuable insights about the most strategic ways to use this platform. Among our customers, video has become the most prevalent form of advertising on Instagram, driving increased engagement and return on investment for brands. We’re also noticing some interesting vertical-specific trends, as companies in industries like telecommunications take advantage of real-time events to augment their television advertising strategies.

Readers: What did you think of Brand Networks’ first-quarter-2016 Instagram findings?

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